How much should you be willing to pay for bond

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Reference no: EM131535587

You are considering the purchase of a 10 year, 12% semiannual coupon bond. If you required an annual effective rate of return of 10.25%, how much should you be willing to pay for the bond??

a. $826.31

b.$597.50

c. $1086.15

d. $1124.62

e. $1431.49

Reference no: EM131535587

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